● Covered by 1 source · 1 reportMedium impact1 negative
Samsung reportedly cuts Galaxy phone production by 30% through 2026 due to rising memory costs
Key points
- Samsung cuts Galaxy smartphone production by 30% through 2026.
- Projected units reduced from 270 million to just over 200 million.
- Rising memory prices, up 175% for 12GB RAM, cited as the reason.
- Report claims Samsung makes no profit on Galaxy phone sales.
Production Cuts Announced
Samsung is reportedly scaling back its Galaxy smartphone production plans by as much as 30% through the fourth quarter of 2026. Original forecasts anticipated Samsung producing around 270 million smartphones in 2026, but the revised projection suggests the company may now barely exceed 200 million units.
Impact of Rising Memory Costs
The primary reason for this production reduction is the surging price of memory components. Despite Samsung's significant presence in the memory market, its mobile division is still affected by these cost increases. For instance, the price of 12GB of RAM has reportedly increased by 175% since last year, with an additional 20% rise expected in Q3 and Q4 compared to the previous quarter.
Profitability Concerns and Financial Outlook
A report indicates that Samsung is making "no profit at all" from the sale of Galaxy smartphones. While this statement might be a generalization, it aligns with recent price hikes for Samsung devices. The company's mobile division is projected to incur a 19 trillion won (approximately $14 billion USD) loss in Q3 2026.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Samsung is reportedly reducing Galaxy smartphone production by up to 30% through the end of 2026, lowering projected units from 270 million to just over 200 million. This cut is attributed to a significant increase in memory component prices, leading to claims that Samsung makes no profit on Galaxy phone sales and faces a projected $14 billion loss in Q3 2026.